Tips from Centra Lawyers

What does a Purchase Agreement regulate?

The Purchase Agreement usually deals with the following:

  • Specific definitions and terms associated with the transaction
  • The parties
  • The purchase price and payment terms
  • Whether it is a share or asset purchase agreement
  • Deposits, hold-backs and right of set-off
  • Escrow arrangements
  • Vendor and purchaser representations and warranties
  • Vendor and Purchaser covenants
  • Vendor’s and purchaser’s conditions of closing
  • Closing date, time and place
  • Closing documents required from both parties
  • Non-dompetition and restrictive covenant arrangements
  • Any further terms applicable to the transaction
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